If Economies of Scale Are an Industry's Primary Entry Barrier

question 25

Multiple Choice

If economies of scale are an industry's primary entry barrier, a new entrant's major risk is

• A) its inability to access labor and materials.
• B) inferior quality of its products.
• C) its inability to match the innovation of the established firm.
• D) its inability to produce in sufficient volume to match the cost advantages of established producers.
• E) its inability to get buyers to switch to its product.

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Definitions:

Maslow

Refers to Abraham Maslow, an American psychologist known for creating Maslow's hierarchy of needs, a theory of psychological health predicated on fulfilling innate human needs in priority, culminating in self-actualization.

Androgynous

Exhibiting both masculine and feminine characteristics, or having an ambiguous sexual identity.

Extraverted

A personality trait characterized by outgoingness, sociability, and a high level of activity and engagement with the external world.

Authoritarian

A leadership or governing style characterized by strict obedience to authority and control over subordinates.